Biotech stocks are on fire this year, surging nearly 24 percent, and a key event this week could spark a massive move in one name that's already up more than 100 percent.

Biotech company Axovant is expected to release important data at the end of September, and the options market is implying a more than 80 percent move in either direction for the stock.

"Data is supposed to come at the end of this month. The next listed options is listed in October," Dan Nathan of RiskReversal said Thursday on CNBC's "Fast Money."

Nathan noted that Axovant shares are trading around $26, so the at-the-money straddle, or simply the call price plus the put price, is $22. This means that the options market is expecting a move in the stock to go as high as $48 or as low as $4 by October expiration.

"Now obviously the much better trade is to the upside, because we know the stock could go to infinity and it could only go to zero [on the downside]. ... At the end of the day, it's a pretty interesting setup," Nathan explained.

Axovant shares were trading more than 1 percent lower at the $25.79 range midday Friday.

Sign Up for Our Newsletter Options Action

Insight directly from the members of our Options Action panel

SIGN UP NOW

Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.

Get knock-your-socks-off tools, simple one-click orders, real-time paper trading to hone your skills, and 24/7 support from dedicated trading specialists. Trade commission-free for 60 days and get up to $600 cash.